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Meta, Microsoft Worry Investors With AI Spending Splurge
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October 30, 2025
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5:57Now PlayingMark Mahaney, head of internet research at Evercore ISI, said that a lack of answers around the future of AI products is prompting nerves in Meta and Microsoft investors as the companies ramp up capex spending on artificial intelligence and data center construction.
The largest technology companies are betting on an AI future powered by gigantic data centers filled with humming servers.
Now that the staggering cost of this push is coming into sharper focus, it’s testing nerves on Wall Street.
Three bellwethers from different corners of the technology world – Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. — together racked up some $78 billion in capital expenditures last quarter. That’s up 89% from a year earlier.
Most of that cash was destined for data center construction and graphics processing units and other gear to fill them. Each increased their forecasts for future outlays. That was enough to rattle investors conditioned to expect enormous spending.
Meta warned that 2026 spending would be “notably larger” than in 2025. And on Thursday, it’s looking to sell at least $25 billion of investment-grade bonds, Bloomberg reported, underscoring the social media company’s appetite for borrowing. Meta shares tumbled as much as 14% after markets opened in New York, their worst intraday decline in 18 months. Microsoft fell as much as 2.5%.
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